Initially, what was the primary purpose of private health insurance in the U.S.?

Question

Options

• APrevent national health insurance from taking hold
• BProvide coverage for major illnesses
• CProvide comprehensive coverage
• DCompensate for loss of income during sickness and temporary disability

• B
  4% (1)
• C
  9% (2)
• D
  87% (20)

Explanation

Private health insurance in the U.S. originated in the late 19th and early 20th centuries primarily as income protection - workers feared losing wages during illness more than they feared medical bills, which were relatively cheap at the time. Option D is correct because early "sickness funds" and fraternal benefit societies focused on replacing lost earnings during disability, not on paying for care itself.

Why the distractors are wrong:

• A is a motivation some historians attribute to the American Medical Association and employers in later decades, not the original purpose of private insurance itself.
• B (major illness coverage) and C (comprehensive coverage) both describe modern insurance goals - catastrophic and broad coverage only became priorities after medical care grew expensive in the mid-20th century.

Memory tip: Think of the word "insurance" literally - early workers insured their paycheck, not their doctor's bill. The shift from "income protection → medical cost coverage" mirrors the rising cost of medicine over the 20th century.

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